If you have not heard, Kraft Heinz Stock (whom Warren Buffett is the largest shareholder) gapped down from $48 to $32 (-34%) after announcing some bad news (dividend cut + contraction in profit margins). This decline is after having been down from a high of $97.77. Overall, the stock is down a total of 67% over the last 2 years.
This shows the DANGER of holding fundamentally lousy companies in your portfolio and blindly following investment gurus (no matter how great they may have been in the past).
Yes, Heinz and Kraft USED TO BE great businesses. But ever since their merger and sub-par management, coupled with changing consumer lifestyles (processed foods to more healthy foods), the company has failed all our 8 Steps of Value Momentum Investing.
Many people have asking me if I would consider buying KHC given that it seems to have dropped so much. Watch my video on how I analyze Kraft Heinz and how I make my decision
Adam Khoo is a professional stock and forex trader and the best-selling author of ‘Winning the Game of Stocks” and “Profit from the Panic”.
He is the four-time winner of the ‘Most Preferred Financial Educator’ Award and ‘Most Preferred Investment Speaker Award’ in Singapore.
Thousands of students have profited from his sharp investment insights into the world of stock investing (value investing), stock trading and Forex trading.
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